Public goods, like national defense, are usually funded through government because:
a. no one cares about them, because they are public
b. it is prohibitively difficult to withhold national defense from someone unwilling to pay for it.
c. they cost too much for private firms to produce them.
d. they provide benefits only to individuals, and not firms.
b
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What is the "underwriting spread?"
A) the average percentage of the total bond issue handled by a member of an underwriting syndicate B) the difference between the price the underwriters receive and the price they pay the borrower C) the length of time the underwriter agrees to withhold the bonds from the primary market D) the number of financial institutions in the underwriting syndicate
The expected benefits of central bank independence include avoidance of ________
A) Ben Bernanke B) public scrutiny of central bank policies C) the time-inconsistency problem D) serious policy errors
Studies have shown that tipping is much less common in countries where caring and personal relationships are highly valued, as opposed to the values of success and materialism
Indicate whether the statement is true or false
Many economists note that the shortage of blood in several rare types is, at least in part, attributable to the fact that the price of blood is
A. kept too high. B. fixed at zero. C. right at equilibrium. D. determined by market forces.